Mozambique expects to export 14,000 tons of fish this year
Banco de Moçambique
The Bank of Mozambique will increase minimum capital requirements and solvency ratio of banks within the next three years, the central bank announced yesterday.
The required minimum capital will increase from 70 million meticais (about EUR1 million) to 1.7 million meticais (more than EUR24 million) and the solvency ratio from 8 to 12 percent.
According to central bank governor Rogério Zandamela, the measure is part of the government’s efforts to ensure “the solidity of financial institutions, in line with good international and regional practices”.
“These are prudential rules and are to be implemented in a maximum of three years,” Zandamela said at a Monetary Policy Committee press conference. “The Central Monetary Policy Committee of Mozambique remains vigilant and is monitoring the risks of the domestic environment.”
The Bank of Mozambique decision comes after months of speculation that some commercial banks have solvency ratios below the required 8 percent.
In November last year, even before the rumours broke out, the Bank of Mozambique ordered the liquidation of O Nosso Banco, majority-owned by the National Social Security Institute for presenting a “situation that was not viable”, and activated the Deposits Guarantee Fund mechanism.
Before liquidating O Nosso Banco, the central bank in September suspended the board of directors and executive committee of Moza Banco, a bank 49 percent owned by Novo Banco, in order to “protect the interests of depositors”, and is currently preparing the institution for sale.
At the time, the Bank of Mozambique reiterated that the Mozambique banking system maintained an average solvency ratio of above 14 percent.Source: Lusa